Business Law and Ethics: Contract, Rights and Responsibilities, Corporate Social Responsibility

This article discusses contract law, its essential elements, conditions for framing a contract, rights and responsibilities under the contract, remedies for breach of contract, and corporate social responsibility. It includes case scenarios and examples to explain the concepts. The article also highlights the difference between corporate behavior and corporate responsibility.

BUSINESS LAW AND
ETHICS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Case scenario 1:...........................................................................................................................3
Contract-.................................................................................................................................3
Conditions and elements for framing a contract-...................................................................4
Avril and Belinda's case:.............................................................................................................4
Rights and responsibilities provided are-...............................................................................5
Case scenario 2:...........................................................................................................................5
Contract-.................................................................................................................................5
Darwash's case:...........................................................................................................................5
Rights and remedies provided are-.........................................................................................6
Corporate social responsibility:...................................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A contract binds various organisations, companies and businesses with a simple
statement of terms in a agreement which includes promises, obligations between the parties. In
England and Wales legally binding agreements are regulated by the Contract law of UK. English
Contract law includes a promise enforceable by law. When something of value is exchanged
between the parties which ensures that the interests of the parties are protected legally that is
when a Contract is said to happen between the parties(Brownsword, 2021). This statute law
covers the cases of Avril, Belinda and Darwash, Charlie.
In today's scenario, business organisations with their increasing business are getting
more aware and prompt to the fact that human actions can actually harm the environment in a
massive way and thus reduction in resources can ultimately lead to reduction of business
opportunities. So in order to curb the loss, the companies are taking the initiative of corporate
social responsibility where, it works for many social concerns and also cares for the
environment.
\ The following project will discuss in detail about Contract, its essential elements and
conditions which are needed for the contract to be formed, about the rights and responsibilities
under the contract and the remedies for breach of contract and the essay is going to elaborate on
the corporate social responsibility, its major elements and its benefits for the society as well as
for businesses. Also it will cover, how corporate behaviour is different from corporate
responsibility.
TASK
Case scenario 1:
Contract-
An agreement between two parties is known as Contract. The agreement in contract gives
rise to obligations which are enforceable by law. When one party makes the offer and the other
party accepts it, a contract is said to have taken place between the two parties. Legal objectives
are said to be achieved by the contract which tries to develop an understanding of governing the

business environment (Chalkidis and Androutsopoulos, 2017). A business runs effectively with a
clear understanding of contract law.
Conditions and elements for framing a contract-
There are four basic and essential elements they are Offer, Acceptance, Consideration and
Intention.
 OFFER- Beginning of a contract involves an offer, wherein the party proposing the terms
of an agreement is the offeror and the other party to whom the offer is made is the
offeree. Presenting an offer by willingly expressing the specific terms of the contract to
the party to enter and accept it and recognise it then it is said to be valid and binding on
the parties (Dimatteo and Poncibó, 2018).
 ACCEPTANCE- When a party accepts the offer, it becomes a contract/agreement. When
the assent expresses acceptance to the terms of the contract it fulfils the second factor. It
becomes legally effective only when it is communicated to the offeror.
 CONSIDERATION- For binding a contract this element is important. Consideration is
“something of value” which enforces a promise. Consideration for a promise must be
give in return for the promise.
 INTENTION- Intent of creating a lawful relationship is a component of Contract. For a
contract to be legally binding, legal intention is required. Social arrangements don't have
a legal intention which doesn't make them lawfully bounded and thus they cannot be
called a contract. For an arrangement to be called a contract it is important for it to have
legal purpose and intention.
Avril and Belinda's case:
The first condition of the contract was fulfilled when Avril made an offer to Belinda. He
willingly expressed and proposed the terms and conditions of the contract but it was not accepted
by her and the element of acceptance was not fulfilled which led to failure in the successful
completion of the contract. The factor of consideration was included by the way of promise of
payment of money for the construction of shed by Belinda and the offer also included legal intent
for it to become a contract. But later due to non-acceptance of it, the conditions during the

second time were changed by the offeror and he increased the amount when she changed her
mind and tried to accept the offer (Draper and Newton, 2017).
Due to the legally binding factors of an agreement, a contract provides the parties bound
by it with some rights and responsibilities which they get and have to perform when they enter a
contract. These will be given as a type of protection of interests to the parties which are Avril
and Belinda when they enter into a contract.
Rights and responsibilities provided are-
 Whenever a breach of contract happens and losses are suffered by a party then the injured
party will get damages and remedies and the person will have the responsibility to fulfil
the same.
 Relief will be given to the injured party in the form of specific performance of contract
by an order of court and he will be eligible to get it from the damager. The court will
compel him to perform the same.
 The party may also get an order by the court which by the way of injunction stops the
party from committing a breach of contract. Because this remedy refrains a party from
doing so in favour of the innocent party. This can be on a temporary or final basis and
can be mandatory or prohibitory (Gorda, 2019).
Case scenario 2:
Contract-
An agreement which takes place between the offeror and offeree which are its parties is a
Contract.
Darwash's case:
In this case, Darwash with a legal intent to make a contract presented an offer to charlie,
the agent for fulfilment of a work in promise of payment of £3,500. Charlie accepted the offer
with legal boundations but the facts of the agreement were misrepresented by him.
Thus Darwash is entitled to get various rights and remedies as a party of the contract. He
had no idea of agent's involvement in the contract due to which he suffered losses. The agent

Charlie sent Eddie to do the work which he did not do properly and thus he was not satisfied by
his work (Jansen and Zimmermann, 2018).
Rights and remedies provided are-
 A suit can be filed against the agent and his worker by him for going against the
condition of Consideration which was decided in the contract.
 For defective performance the contract can be terminated in which the role assigned to
Eddie was not performed by him properly which amounts to breach of contract.
 This serious defect in performance can be amounted equal to non performance and it can
be taken up by Darwash due to the very fact that it will require him to get the entire work
redone.
 When Charlie involved the third party Eddie by giving him the terms of the contract to
carry out the work, he incapacitated himself.
 If Darwash refuses to accept the breach as the injured party then he will be entitled with
the right to enforce the primary obligations of the work of the other party.
 Non performance of obligation by the party and their defectiveness it leads to the release
of injured party from the contractual obligations and remedy is provided in various forms
which is termination for breach. This right of terminating the contract completely
depends on the injured party.
 Factors like misrepresentation and mistake which are responsible for making a contract
invalid are vitiating factors because if this factor applies many contracts can become
unenforceable even if they are drafted with care and attention.
 False representation of the statement of facts of the terms of a contract is
Misrepresentation wherein entire parts of the truth are not fully presented by one party to
another party. The facts were hidden by charlie that he was the agent who contracted and
appointed other people to work, he misrepresented facts from Darwash intentionally and
falsely presented the reality.
 He is liable to get remedies like Rescission where court has the discretionary power to
establish and set aside the contract's terms and bring the parties in the original position
where they were before the contract was made.

 He can also get indemnity provided in his favour wherein payment for expenses can be
ordered by the court.
 Remedies can be claimed by the injured party from the other party for all the losses and
damages that he suffered. The injured party must show that he is entitled for
compensation due to the actual no. of losses that he suffers by them.
 A lot of times injured party do no consider damages as appropriate remedies because of
the inadequacy based on the loss that he has suffered due to end of contract and non
performance of promises.
 Injured party can also be compensated by Specific performance and injunction. Based
on the discretionary power of itself the court can order specific performance of certain
norms of the contract, if according to it, it is appropriate in favour of injured party.
Stopping a party from committing a breach of contract is termed as Breach of contract
because it refrains a party from doing so in favour of the innocent party.
Task 2
Corporate social responsibility:
Corporate social responsibility (CSR), is a concept where companies amalgamate
environmental and social concerns in their said businesses. Basically, it can be said as an effort
of the company to enhance the society in some or other way by contributing to it. It can be done
in both ways either by directly donating some money as a some percentage of their total profits
or by implementing environment friendly policies in the the workplace. It is sort of an added
activity which companies do in order to alter their global as well as local communities.
Companies which grasp CSR are generally incorporated in a manner which authorizes them to
act in a socially responsible way(Ali, Frynas and Mahmood, 2017). Further it is a kind of self-
regulation which can be stated in scheme or initiatives depending on company's goals. Generally
the corporate social responsibility is divided into four major class which are in details as follows-
Environmental responsibility, this form of CSR is reasoned as one of the most common
forms. It is mentioned as a thought that companies should behave in an environment friendly
way as much as possible in order to execute their production. Companies who concerns this
responsibility can curb the issue while taking initiatives in several ways such as by minimizing
the amount of wastes, pollution and consumption of water used by the production unit of the

company (Bennett and Grabs, 2021). Also by increasing the recycling process and more use of
renewable energy can also adds to the fulfilment of this form of CSR.
Ethical responsibility, is majorly about the manner in which Defining Corporate Social
Responsibility,” Corporate Social Responsibility Initiative, Harvard Kennedy School,the
company is working which means that concerned company should have the fair and ethical
manners of operation with both internal as well as external forces. Companies which fulfils this
responsibilities focuses on equal and fair treatment of all its concerned peoples, including
customers, employees and investors. Here the company should ensure to frame proper non
discriminatory norms and cultures for the people working in the organization as this will also
maintain a health relationship between the employers and employees. For instance company in
lack of any minimum living wages can set a minimum criteria of pay for its own employees and
can adhere to it as a basic ethical obligation(Brin and Nehme, 2019) .
Economic responsibility, here any business who concerns with this form of responsibility
tries to enter into financial agreements which not only just results in making a lot of profits but
which also results in doing some good to the economy as well. A very good example of this can
be, where an employer signs a contract with the party which produces sustainable products even
if it charges more than usual products.
Philanthropic responsibility, following this form of corporate social responsibilities
companies ensures to donate a fixed percentage or a portion of their profits on regular basis
society. Many companies prefers to give away the part to the various non profit organisations
whereas many creates their own charitable trusts for a particular cause of the society.
Talking about the benefits of corporate social responsibility, there are lot with respect to
both society as well as business. But some of the very major are as follows, the very first can be
with respect to the business is that the action of CSR can be prove as an effective advertising tool
for the company making its favourable image in the eyes of the customers and similarly can also
improve the involvement and satisfaction of employees(Kim, Yin and Lee, 2020). It is also
proved very effective for brand identity of the company as this imitative helps in boosting public
respect and customer trust.

Furthermore, there are various aspects which leads to the success of any organisation.
Where Corporate social responsibility and business ethics are some of those said factors. The
first and foremost task for any company is to is to gain maximum profits but in order to do the
same, one should not ignore the set of responsibilities and rules which it has to follow. The
terms corporate behaviour and corporate responsibility are both related in terms of any business
but there lies a huge difference if both the terms get compared with each other. In Corporate
social responsibility company contributes its part of earning to the society for the welfare of the
society. It can also be done other than the monetary terms. Whereas business ethics are the basic
set of standards of what is right and what is wrong which company ensure to be followed within
the organisation as well as to be followed by the external peoples. In case of former one society
and individuals are involved whereas in business ethics, it concern to companies and corporates.
In CSR, the very basic focus is to benefit the society and economy whereas in business ethics, it
majorly aims to profit the company and employees(Monebhurrun, 2018) .
Moreover, the initiative of corporate social responsibility by Harvard Kennedy School
of government is considered as one of the most crucial beginning to this concept which enhanced
the effort of public enterprises. The authors of Harvard Kennedy school have contributed a lot by
emphasising on the functions of companies and businesses in economic and social factors like,
by boosting companies to have more lenient and friendly norms with respect to human rights
and to ensure to give the regulations for same. They also highlighted the significant role of the
companies which play a major role in climate actions and their urges to address the climate
crisis. Also, the need for addressing the public issues with their effective results of betterment
was encouraged to give the foremost importance. The Kennedy school also gave a blow to the
idea that it is for the betterment of any company to to stand on the mark of trustiness in the eyes
of both society as well as for his employees. Authors of this school had the imagination for the
future companies to guide them towards the economic as well as social welfare of society by
doing several human action on their part and the share of earnings for the sake of some required
good work. Also the authors of Kennedy school introduced several policies and norms like
financial policies, educational policies, public policies, etc. in order to ensure the effective
corporate social responsibilities by the companies.

Further, Joel Conrad Bakan, who is an American Canadian writer in his very famous
documentary, being named as The corporation, tried to give the insight knowledge about
corporate behaviour and corporate social responsibility(Wong and Kim, 2020). It gave
importance of both the said concepts on the modern day business organizations. With the help of
this documentary, Joel tried to throw some light on the fact that in current running time,
businesses are more oriented with the thoughts of only having maximum profits out of the
available resources and are becoming more neglected of their responsibilities towards society.
CONCLUSION
It can be summarized by the first part of the project that English Contract law is vast
document which elaborates on what is needed in order to form a contract. It explains the
elements of a valid contract wherein parties are legally bounded by the agreement and are
required to fulfil its obligations. Both the above mentioned cases were examples of Contract law
and thus they were provided with remedies for breach of contract. The injured party could file a
suit for the fulfilment of the conditions of contract. The next part explains about the concept of
Corporate Social Responsibility which is implemented by almost every company in today's time.
It makes the company a part of business environment and holds them publicly accountable for
their actions. CSR makes companies share a percentage of their profit in social and
environmental development of society. Harvard Kennedy's school and the documentary was
analysed which presents view on modern day corporations and provides ways to practice CSR.

REFERENCES
Ali, W., Frynas, J.G. and Mahmood, Z., 2017. Determinants of corporate social responsibility
(CSR) disclosure in developed and developing countries: A literature review. Corporate
Social Responsibility and Environmental Management, 24(4), pp.273-294.
Bennett, E.A. and Grabs, J., 2021. CARR CENTER FOR HUMAN RIGHTS POLICY
HARVARD KENNEDY SCHOOL.
Brin, P.V. and Nehme, M.N., 2019. Corporate social responsibility: analysis of theories and
models.
Brownsword, R., 2021. The future of contract law: Three conversations at the Cape. Acta
Juridica, 2021(1), pp.3-35.
Chalkidis, I. and Androutsopoulos, I., 2017, December. A Deep Learning Approach to Contract
Element Extraction. In JURIX (pp. 155-164).
Dimatteo, L.A. and Poncibó, C., 2018. Quandary of smart contracts and remedies: The role of
contract law and self-help remedies. European Review of Private Law, 26(6).
Draper, M.J. and Newton, P.M., 2017. A legal approach to tackling contract
cheating?. International Journal for Educational Integrity, 13(1), pp.1-16.
Gorda, A.N.S.R and et. al., 2019. The Legal Status of Surrogacy Agreement According to
Contract Law in Indonesia. Jurnal Magister Hukum Udayana (Udayana Master Law
Journal), 8(4), pp.471-479.
Jansen, N. and Zimmermann, R. eds., 2018. Commentaries on European contract laws. Oxford
University Press.
Kim, M., Yin, X. and Lee, G., 2020. The effect of CSR on corporate image, customer citizenship
behaviors, and customers’ long-term relationship orientation. International Journal of
Hospitality Management, 88, p.102520.
Monebhurrun, N., 2018. Consumer Social Responsibility as a Requirement for Corporate Social
Responsibility. Braz. J. Int'l L., 15, p.13.
Wong, A.K.F. and Kim, S.S., 2020. Development and validation of standard hotel corporate
social responsibility (CSR) scale from the employee perspective. International Journal
of Hospitality Management, 87, p.102507.